CME sees record quarterly loss
February 27, 2013
Central European Media Enterprises (CME) succumbed to a record fourth-quarter net loss after a hefty writedown and missed 2012 core profit guidance, sending its shares down almost 10 per cent.
The broadcaster said it was looking to raise cash by selling assets, lifting fees and holding talks with US media company Time Warner – its largest shareholder.
CME posted a $494.2 million quarterly net loss, up from a $72.4 million loss the previous year, after taking a $522.5 million impairment charge, though gave no further detail.
CME also reported a 20.7 per cent drop in quarterly underlying profit (OIBDA) to $60.7 million. Full-year OIBDA fell 16.2 per cent to $125.4 million, below the company’s guidance for between $130 million and $140 million.
CME said it was considering new equity financing, asset sales and the renegotiation of fees with a number of major suppliers.
“Challenging times require bold actions: increasing advertising prices and carriage fees,” Chief Executive Adrian Sarbu said in a statement. “We are planning to restructure our operating model, to reduce the cost base and improve our capital structure and liquidity.”